BG Group wins EXXON LNG Cargo

ExxonMobil's Papua New Guinea liquefied natural gas (LNG) export project has awarded a November cargo to BG Group as part of a two-cargo tender that closed this week, two traders said.

The tender award has not been officially announced yet, and it remains unclear which company won the second cargo, if any.

Demand for LNG has weakened considerably in recent weeks as a short-lived rebound in the price of spot supply lost momentum, with prices for November delivery trading below $14 per million British thermal units.

Trading companies betting on a price rebound this winter began to store LNG on tankers in the hope of taking advantage of a market structure called contango, where later-dated delivery periods fetch higher prices.

Some of these positions are now starting to be cleared as the forecast price recovery struggles to take root.

Reporting by Oleg Vukmanovic